Lido DAO Experiences a 10% Surge - Could a $38 Billion Total Value Locked Drive LDO Over $2?
Lido DAO, a prominent DeFi protocol, has experienced a significant surge in its price, TVL, and market sentiment over the past 24 hours. This upward trend can be attributed to a combination of positive factors, including upcoming governance events, improved financial performance, correlation with Ethereum's price appreciation, bullish technical patterns, increased trading activity, and record ecosystem metrics.
The renewed surge in LDO's price has been accompanied by a 122.74% spike in 24-hour volume to $391.95 million, indicating heightened market interest and active trading during bullish moves. This surge came alongside a shift in investor behaviour, with inflows suggesting that assets are being locked into the protocol again.
The surge follows a period when TVL peaked near $35 billion in January, only to see more than $20 billion exit the protocol, signalling a shift towards short-term positions. However, the recent all-time high TVL of $38.17 billion showcases robust staking activity and confidence in the protocol, despite some short-term price corrections.
One of the primary drivers of the recent rally has been the anticipation of Lido DAO's first-ever Tokenholder Update, scheduled for mid-August 2025. This event sparked strong bullish investor sentiment, reflected in a 68-70% price rally over the prior week leading into it and a significant increase (292%) in new wallet addresses joining the network.
Lido DAO's financial performance has also improved, with the project turning profitable in August 2025, moving from prior substantial losses to a modest profit of $1 million. This profitability has improved the project's fundamentals and market outlook, making it an attractive DeFi protocol in comparison to peers, especially given its large TVL over $38 billion with a relatively low market valuation.
Ethereum’s price rally has further supported LDO’s momentum, as Lido DAO depends on Ethereum staking. Thus, broader adoption and rising ETH prices have positively influenced LDO’s outlook and price targets around $1.64 to $2.55 in the short term.
Technical indicators have also contributed to positive market sentiment and price momentum. Bullish chart patterns, such as a falling-wedge breakout and double-bottom setup on LDO’s price charts, indicate near-term price targets from $1.64 up to medium-term forecasts near $3.36 by October 2025.
Off-chain metrics suggest investors are positioning for further gains. The aggregated Funding Rate across perpetual markets of multiple centralized exchanges is 0.0094% in the last 24 hours, as per CoinGlass. This positive Funding Rate indicates more long contracts in the derivatives market, reflecting a bullish sentiment.
Moreover, LDO recorded $1.71 million in net outflows from exchanges on the 10th of August, indicating tokens moving into private wallets. This trend suggests that investors are holding onto their assets, a sign of confidence in the protocol's future performance.
In conclusion, the surge in LDO price, TVL, and market sentiment has been driven by a combination of positive upcoming governance events, improved financial performance and fundamentals, correlation with Ethereum price appreciation, bullish technical patterns, increased trading activity, and record ecosystem metrics such as TVL. If the pressure holds, LDO could aim for a break above $1.50, with $2 as the next technical target.
- Lido DAO's price surge over the past 24 hours has resulted in a 122.74% increase in 24-hour volume to $391.95 million, demonstrating active crypto market participation.
- The recent surge in LDO's price is attributed to anticipation for the first-ever Tokenholder Update scheduled for mid-August 2025, causing bullish sentiment among crypto investors.
- Lido DAO's financial performance has significantly improved, reflecting a shift from substantial losses to a modest profit of $1 million in August 2025, enhancing its market outlook and attractiveness as a DeFi protocol.
- Ethereum’s price rally has positively influenced LDO’s momentum, as Lido DAO relies on Ethereum staking, potentially driving LDO's price towards short-term targets around $1.64 to $2.55.
- Bullish technical patterns, such as a falling-wedge breakout and double-bottom setup on LDO’s price charts, further support the surge in LDO's price and foresee near-term price targets from $1.64 up to medium-term forecasts near $3.36 by October 2025.
- A positive Funding Rate of 0.0094% across perpetual markets on multiple centralized exchanges indicates increased long contracts in the derivatives market, suggesting strong market sentiment and potential for further LDO price appreciation.
